Export prices for most grades of rice continued to surge in response to limited exportable
supplies. Trade sources reported that exporters were securing rice supplies to meet
seasonal import demand from African buyers who need to build up stocks in advance of
Ramadan, by September. However, local millers and traders are still holding the stocks, as
the Government remains uncertain about the plan for the intervention stock release. In
addition, the intervention policy is expected to continue for 2005/06 crop because domestic
price stabilization is the top priority of the Government. Also, further strengthening Thai
Baht to around 41 baht/$US still contributes to current high quotations.